Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
That's absolutely true Elprofessor. In fairness that should have a marked impact on cost efficiency..
That's probably the crucial thing tbh.
I was reviewing the production periods myself earlier, comparing etc and hats off to their improvements there for sure.
If they hit guidance of 7000 saleable tons @8229 dollars a ton that'll be best part of $58 million dollars, excluding the gold streaming.
Looking at the financial statement for 2021 the C3 cost was 30.818 million Dollars (for clarity I verified that the accounts state they are in USD and not Canadian)..
C3 doesn't have any 'standardised meaning' but Rambler confirmed ....
'the Company adjusts for non-cash items
and includes financing fees within the total cash costs.
Total cash operating costs include mine site operating costs (mining, processing and refining, in-mine drilling expenditures, administration, and production taxes), but are exclusive of other costs (non-cash inventory valuation adjustments, reclamation, capital, long-term development.'
Im assuming it also doesn't cover debt repayments or exploration spend either.
Anymore more well versed here chime up if you know more about what is / isn't in the RMM C3 costs and the $ numbers attributed to those items.
On review debt is very high it was $20 million USD with 8% plus some other bits and fees. So let's attribute $1million a month. $12 million a year. Long term development and exploration not sure on and too tired to look more.
But with c3 and debt repayments looking at about $43 million USD combined it'll be close in terms of profitability but not unreasonable.
Clearly the debt is being reorganised and can reduce.
Exploration costs outside of 'in mine' drilling expenses, capex spend on long term development and cost reduction initiatives etc is harder determine and to some degree optional (albeit critical).
This is where I believe the motivation is to shore up the balance sheet and get capital.
All wy too many assumptions, variables and dependancies to waste any more time on it.
It's an interested wait for financials and financing, then chew the cud on it then tbh. I'm hoping we get some decent commentary on strategy and spend in the financials to be able to be a bit more transparent to investors.
Atb
Interesting point from DanielC43R about the presentation having changed between May and June. Perhaps if we put that and the RNS together it might be possible to infer:
- Rambler is cash flow positive based on day to day mining cost only (implying those costs are less than about 3.50/lb)
- Rambler was cash flow positive including development and capital costs in May but not in June (implying costs including these items are between about 3.80 and 4.30)
- Rambler was not and is not cash flow positive including debt repayment obligations (no idea what costs including this item would be)
Guesswork, obviously
It is not you are correct! I have stayed away from Cineworld chat as it is getting silly from both sides!
Nothing is given AJones, as discussed in cine group imho
Some valid points! We deserve a decent RNS! This is far from a dead duck like some have said and with the right investment can be a very big player in the copper market!
Great conversation thread here. Thank you to all those contributing to it.
I just wanted to draw your attention to a few lines on the Innovations News Network Report on the RMM Website:
'Rambler is on track with its 2022 production target of 7,000 tonnes of payable copper. This represents a 100% uplift on 2021 and, given the performance to June 2022, the second half of 2022 will be a 100% uplift on the first.'
Not withstanding the reduced copper price if H2 is double the H1 production then AISC should fall significantly and cash flow improve.
LL, that's true about the operational viability statement in the RNS. You may well be right about RMM making some profits. I can't conclusively disagree of course.
The use of the words in the recent RNS about the cash being for the balance sheet and not about operational viability did also suggest the same to me.
Other elements of the recent RNS conflicted that for me, it wasn't overly clear to be fair. Plus the previous known C1 & C3 figures in the financials for 2021, against the backdrop of increased costs this year and lower copper price (significantly below the previously issued costs), are not stacking up ATM, to me, to demonstrate how it's a cash positive and profitable operation.
Even the presentation in June 2022 says they are building toward cash positive operations.
They've clearly made strong progress in mining production and consistency in almost (if not all) metrics. It's just the major cost saving initiatives like the ore sorter, location of mill, tailings, electrification, hoist etc are at study stage or not yet exploited.
No doubt on the resources in the asset(s), it's just the cost ratios seem very high at this stage without those key initiatives and Dev capex spends.
I'm certainly keen to see how those costs have changed, since the operational improvements, in the upcoming financials.
Clearly the share price will deserve to be catapulted up on resolution of the balance sheet weakness if it's largely debt based and of any evidence that the costs have come down to below the current copper price in the financials. Well find out over the next couple weeks.
I'm dubious based on what I've seen and so I think short term their is likely to be equity elements to the raise (which may be significant) and I'm not convinced the costs have reduced materially i.e. to a point where the all in costs of RMM are below the current copper price.
I'm not an expert in mining operations, or an accountant. These are just views as an experienced investor. They may well be wrong and no one including myself gets it right all the time.
I think mid to long term, dependent on the shape of the financing and the major cost initiatives being progressed, RMM can return healthy profits for investors. It's just a case of time and good financial and operational management.
Certainly looking forward to financials and updates to clarify the uncertainty.
Atb
MING MINE MINERAL RESOURCE ESTIMATE
23.755 million tonnes of Measured and Indicated Resources grading 1.80% copper and 0.35 grammes per tonne
gold, containing 945 million pounds of copper and 271 thousand ounces of gold, at a 1% copper cut-off
The Inferred Mineral Resource estimate includes 6.430 million tonnes grading 1.86% copper and 0.38 grammes per
tonne gold, containing 264 million pounds of copper and 78 thousand ounces of gold, at a 1% copper cut-off
Taken from the June presentation there are the various cost reduction initiatives (that will surely require funding);
Ore sorting project, Mine expansion with Mill relocation, commercial power upgrade, hoisting and tailings back fill.
Liked this in the presentation 'All mineralisation on the property remains “open” in all directions with current diamond drilling showing improving copper grades and widths at depth' and 'Studies to potentially more than double current production'.
Did not like so much 'Building towards cash positive operations including sustaining capital' as a change from the May 2022 presentation which read 'Cash positive operations, now including sustaining capital'. GLA, Dan
I Do like the below!
An operating and cash-generative copper-gold
mine in Newfoundland, Canada, producing at an
annualised rate of 8,000 tonnes copper per annum
with a goal to produce around 25,000 tonnes of
copper per year, plus its significant exploration
potential, should have a value of several hundreds of
millions of dollars in today’s market.
The true value of Rambler makes the current balance
sheet, as well as future capital growth requirements,
eminently manageable issues from which
shareholders can realise significant upside.
Rambler is gaining the attention of investors that
have moved to the next chapter.
Hang on multi. I've read your posts elsewhere and you have slated the BoD and yet you agree with Louise that Rambler is being run by professionals. Which is it?
Ye, I Agree Louise! I am personally down and managed to average down to 13.2p But I am really not worried about it as I know this is going to do very well! £14 million market cap for a £1 Billion mine? That is fully established and producing considerable amounts! What a great price to get in at! In my opinion I can only see this going up
Once we got 20 to 30 million and fix ore sorter We will be 30p again in days as production will be 900 to 1000 per month with coming rising cu price from December once China open fully . They will manage the money asap .
RNS....
Tells me that company is operationaly viable..ie , we are making some profits to continue as an ongoing business..
Tells me that operational performance has improved following investment...
Capital is sought to consolidate companies operational gains...
Electricity prices are up and copper is lower and we are producing more and more copper.......so we need more working capital...
The mine wasn't in good shape and that's been fixed , and now we need to fix balance sheet..
This is not a profit warning...
Copper prices forcast at $9100 to 10,000 per tonne for 2022 remainder and 2023... that's 4.00 to 4.5 per pound!!
Share price suggests this is a basket case.... it's NOT..
This is a business that's being improved operationaly and financially by professionals.....
In the 2021 financial report the 30.818 million usd / 7228 saleable copper gave a c1 cost of $4.26. C1 costs don't include things like dev, exploration costs or reclamation (I believe)
C3 (fully allocated costs) was $5.83
I'm not sure how much this has changed but we'll find out hopefully in the financials that are due imminently.
Improvements in mining efficiency and head grade'should' have created economies of scale but then inflationary impacts seem to have driven up costs.
Who knows
They cost to mine it has dropped considerably according to the company! We really do need a spike in copper prices though! And hopefully that will come!
The 760L program so far has added 34,000 tonnes of mineralized material at a grade of 2.13% copper
to the near term mine production schedule. In terms of the specific quantities associated with the
stopes that this drilling covers, this has increased the planned mineable stopes size from 43,500 tonnes
to 79,000 tonnes, an 82% increase. Importantly, there is minimal additional development required to
access this material, thereby keeping the cost of mining to a minimum
I so hope you are right Mr. Jones, I truly and honestly do.
What we must hope for is a rise in the copper price, which is basically where it was 10 years ago (in absolute terms let alone adjusted for inflation). In theory it should rise with EVs etc. No good having all the copper in the world if it costs more to get to market than its market value.
The terms we get for any cash raised (equity of debt) will depend on the copper price so we had all best hope it rises pretty damn quick
Assets at yearend of 2021 was $114,465,000 after bank loans and Liabilities they had assets of $72,833,000 and Debtors of $ 1,500,000 - This is not taking into account that the mine is worth over $1 Billion! - The chances of this going under are very unlikely as most Banks will lend to them with Assets like that!
You must be easily pleased goingtomoonufo.
I suspect you are just a wind up merchant, and why not. We may as well have a laugh!
Can you please explain when and where you think they will try and raise the £290 Million? I think your wrong I think they might try for £2.9 Billion! Actually no why not make it a cool £5 billion
Shut dwn mine for electricity upgrade cost millions just wait because this is point in my life i can’t believe how amazing this really is
Keep saying that just wait and see did not say now but begin
'11p is the bottom' eeeyy
Problem is moon if they do go huge as you wish and they use say D4E, that wipes out existing shareholders. Company and employees fine but existing shareholders diluted to oblivion. You are talking about complete recapitalisation of the company….
Placings and rights issue now are unlikely to provide material amounts of cash due to v low market cap. Who knows might play a part of a mix where existing shareholders are thrown a small bone….
BoD need to set the record straight asap. Especially on costs to mine and AISC.
They are never going to raise £290 Million, and they are NEVER going to ask for anywhere near that! I have never read something so silly!